US President Joe Biden has blocked a $14.9 billion deal between US Steel and Japanese firm Nippon Steel, citing his presidential authority under the Defense Production Act of 1950.
The decision comes after President-elect Donald Trump had vowed to stop the acquisition when he takes office later this month, fearing it would result in American jobs being lost to foreign ownership.
US Steel employs thousands of people across Pennsylvania and the US steel industry is critical for resilient supply chains, according to Biden’s statement.
However, US Steel and Nippon Steel have disagreed with the order, calling it a “clear violation of due process and the law governing CFIUS”. The companies had planned billions of dollars in investments in the US as part of the deal.
The blockage is expected to have short-term implications for job stability at US Steel, but it does not address the company’s long-term financial needs. Biden’s administration has stated that keeping US Steel under American ownership is a priority.
Source: https://eu.delawareonline.com/story/news/2025/01/03/why-did-biden-kill-us-steel-deal-what-it-means-in-pennsylvania/77447955007